The present study on economic analysis of sugarcane cultivation was fulfilled with the specific objective to estimate cost and return in sugarcane cultivation was conducted in Sonipat district of Haryana state during the year 2017-18.
Trang 1Original Research Article https://doi.org/10.20546/ijcmas.2019.810.093
An Economic Analysis of Production of Sugarcane under various Methods
of Irrigation in Sonipat District of Haryana, India
Dushyant Kumar 1 , Pukhraj Singh 2 , Lalit Kumar Verma 2 * and Nitin K Nag 2
1
Department of Agricultural Economics, U.P College Varanasi – 221003 (U.P.), India
2
Department of Agricultural Economics, J.V College Baraut, Baghpat, -250611 (U.P.), India
*Corresponding author
A B S T R A C T
Introduction
Sugarcane is an important commercial crop of
the world and the cultivation of sugarcane, in
India dates back to Pre-Vedic period (2000
B.C.) India is one of the principal centers of the origin of the sugarcane Sugarcane is grown in diversified climatic condition i.e tropical and sub-tropical Sugarcane cultivation and development of sugar industry
International Journal of Current Microbiology and Applied Sciences
ISSN: 2319-7706 Volume 8 Number 10 (2019)
Journal homepage: http://www.ijcmas.com
The present study on economic analysis of sugarcane cultivation was fulfilled with the specific objective to estimate cost and return in sugarcane cultivation was conducted in Sonipat district of Haryana state during the year 2017-18 It was selected 4 blocks randomly; namely Sonipat, Kharkhoda, Gohana, and Ganaur blocks from sonipat district were undertaken on the basis of maximum area brought under cultivation of sugarcane of haryana state 200 farmers were selected randomly from four blocks out of which, marginal (14), small (49), medium (69) and large (68) The findings of the study envisaged that among the different irrigation methods, drip method was the highest percentage at large farm in sugarcane cultivation and found to be 78.70 percent area, which was start decreasing as farm size decreases Drip method was not popular among marginal and small farmers The sampled households were sugarcane growers and percentage area under sugarcane was ranging from 26.08 percent at large farms to 31.25 percent at marginal farms The cropping intensity was also high, which varied from 105 percent at large farms
to 267 percent at marginal farms The inputs/material use in fresh sown sugarcane and ratoon crop was not as per the recommendation and initial inputs use, labour and power use were found to be less than fresh sown sugarcane The cost of cultivation of crop under flood ratoon was 93728 Rs/ha, sprinkler 97973 Rs/ha and drip 93568 Rs/ha whereas, it was found to be flood fresh sown sugarcane was 126188 Rs/ha, in sprinkler 133957 Rs/ha and in drip 136043 Rs/ha, respectively This gives us variable cost incurred in ratoon crop was less than fresh sown sugarcane The benefit cost ratio in ratoon crop of sugarcane was comparatively higher in all three methods of irrigation than that of fresh sown sugarcane; it indicates that ratoon crop has involvement of low cost of production and high net return but not have long term benefit to increase the productivity of sugarcane
K e y w o r d s
Sugarcane,
Productivity, Cost
of cultivation, Net
return, Benefit cost
ratio
Accepted:
07 September 2019
Available Online:
10 October 2019
Article Info
Trang 2runs parallel to the growth of human
civilization and is as old as agriculture The
importance and use of sugarcane and sugar in
the country’s socio-economic milieu is deep
rooted and immense In the current day rural
economy set up sugarcane cultivation and
sugar industry has been focal point for
socioeconomic development in rural areas by
mobilizing rural resources, generating
employment and higher income, transport and
communication facilities
Sugarcane (Saccharum spp.) is an important
commercial crop in India and plays a pivotal
role in agricultural and industrial economy of
our country Sugarcane is an important
commercial crop of the world and more than
100 Countries produce sugar, at present
Brazil, Cuba, Mexico, India and Thailand are
the leading producers of sugarcane Currently
69 per cent of the world’s sugar is consumed
in the country of region Globally, sugarcane
is cultivated over an area of 20.10 million
hectares with a production of 1,318.10 million
tones and productivity of 65.5 tonnes per
hectare Sugarcane area and productivity differ
widely from country to country Brazil has the
highest area (5.34 million hectares) while
Australia has the highest productivity (85.1
tonnes per hectare) India ranks second among
the sugarcane growing countries of the world
in the both area and production after Brazil
with an area under sugarcane cultivation of
4.94 million hectares with an average yield is
68.6 tons per hectare
Sugarcane is heavy feeder of nutrients and
requires frequent irrigation to get more
productivity The crop sown with proper
spacing and stand for longer period of time
Therefore, this research work aim is to
understand the private and social costs on
subsidy provided for fertilizers and drip
irrigation system in sugarcane cultivation and
their impact on resource use efficiency
Keeping in view the above discussion of the
sugarcane cultivation, the present study was
an attempt to find out the cost and return of sugarcane under various method of irrigation
in the study area
Materials and Methods
The present study deals with the cost and return of sugarcane conducted in Sonipat district of Haryana state during the year
2017-18 It was conducted in 4 blocks; namely Sonipat, Kharkhoda, Gohana, and Ganaur blocks from Sonipat district were undertaken
on the basis of maximum area brought under cultivation of sugarcane of Haryana state
200 farmers were selected randomly from four blocks out of which, marginal (14), small (49), medium (69) and large (68) farmers based on their holding size The primary data from the farmers was collected through personal interview method with the help of well prepared pretested schedule and questionnaire for the year 2017-18
Collected data were tabulated according to need and purpose of study Simple tabular analysis was made To workout economics of Sugarcane production, different cost concept such as cost 'A', cost 'B' and cost 'C' were used
Cost A1 = All actual expenses in cash and kind incurred in production by the producer The items covered in costs on:
i) Hired human labour, ii) Hired bullock labour, iii) Owned bullock labour, iv) Home produced/purchased seed, v) Plant protection chemicals, vi) Home produced/purchased manure, vii) Fertilizers, viii) Depreciation on farm machinery, equipment and farm building, ix) Irrigation, x) Land revenue, land development tax and other taxes, xi) Interest
on working capital, xii) Interest on crop loan and xiii) Miscellaneous expenses
Trang 3Cost A2 = Cost A1 + Rent paid for leased-in
land
Cost B1 = Cost A1 + Interest on value of
owned capital assets (excluding land)
Cost B2 = Cost B1 + Rental value of owned
land (net of land revenue) and rent paid for
leased-in land
Cost C1 = Cost B1 + Imputed value of family
labour
Cost C2 = Cost B2 + Imputed vale of family
labour
Cost C3 = Cost C2 + 10 per cent Cost C2
Income over different cost
Income over cost A1 = Output – Cost A1
Income over cost A2 = Output – Cost A2
Income over cost B1 = Output – Cost B1
Income over cost B2 = Output – Cost B2
Income over cost C1 = Output – Cost C1
Income over cost C2 = Output – Cost C2
Income over cost C3 = Output – Cost C3
Results and Discussion
Cost of cultivation of Sugarcane by method
of irrigation
The cost of cultivation is a principal factor in
order to pursue price policy support in terms
of minimum support price declared by the
government to benefit the farmers The cost
incurred on different inputs while sugarcane
cultivation was varies in fresh sugarcane and
ratoon sugarcane crop table 1 and 2
The cost of cultivation of fresh sown sugarcane the inputs/material used, human labour, power used and interest incurred shows large difference between them but the percent cost among same input, labour & power used under three different irrigation method does not varies much In the study, highest cost incurred in human labour i.e flood (42.83%), sprinkler (44.84%) and drip (48.62%) and material used i.e., flood (27.36%), sprinkler (27.73%) and drip (25.44%), irrigation methods, respectively The data revealed that the total fixed cost shares smaller amount i.e., flood (21.88%), sprinkler (20.61) and drip (20.29%) irrigation method to the total cost of cultivation where as the cost incurred in total variable cost were highest in flood (78.71%) sprinkler (79.39%) and drip (79.71%) irrigated method, respectively
Thus, the cost incurred in variable cost is higher but total cost of cultivation can be reduced by managing the resources or inputs/material, which is the cause of increased variable cost Since, variable cost changes with level of production therefore; optimum level of inputs should be used The cost of cultivation for ratoon crop is lesser than fresh sown sugarcane crop The human labour cost incurred 50 percent of total cost of sugarcane cultivation The result reveals that the total fixed cost was higher in ratoon crop (29.45%), sprinkler (28.18%) & drip (29.50%)
in flood irrigation than the fresh sown sugarcane crop
The variable cost was in flood (70.55%), sprinkler (71.82%) and drip (70.50%) irrigation method, which is lower than the fresh sown sugarcane crop Since, variable cost changes with the levels of production, more the production higher the cost and vice versa, which interpretation that the production
Trang 4of fresh sown sugarcane is higher thus
variable cost is higher where as in ratoon crop
production is lower therefore the total variable
cost is less than the fresh sown sugarcane
crop
Economics of sugarcane cultivation
Benefit cost ratio determine the amount of
monetary gain realized by the farmers versus
the amount it cost to grow sugarcane crop in
the field It was found that the amount used in
inputs/material, labour and power used in
fresh sown sugarcane and ratoon method
under different irrigation method were varies
Therefore, the cost of production under flood
irrigation was 164.24 ₹ /ha, sprinkler 152.00
₹ /ha and drip 128.84 ₹ /ha which is higher
than the ratoon crop i.e flood 138.66 ₹ /ha,
sprinkler 126.16 ₹ /ha and 97.76 ₹ /ha It was
observed that cost of cultivation directly
proportional to the output production level
therefore, the fresh sown sugarcane has higher
yield & more cost of cultivation i.e flood
768.30 q/ha, sprinkler 881.330 q/ha and drip
1055.93 q/ha where as in ratoon the cost of
cultivation is lower than the fresh sown
sugarcane therefore the yield recorded as in
flood 675.96 q/ha, sprinkler 776.58 q/ha and
drip 957.13 q/ha
The gross return of fresh sown sugarcane was
higher than the gross return of ratoon
sugarcane crop but the net return of ratoon
sugarcane crop is higher than the fresh sown
sugarcane
Since, net return gets by deducting all fees,
expense and taxes therefore the ratoon
sugarcane has higher net return because
expenses and taxes i.e cost incurred for
cultivation and production is much less than
the fresh sown sugarcane Hence, monetary
gain is more in ratoon crop because amount it
cost to grow is less In the study, benefit cost
ratio of ratoon crop is higher 1.02 in flood, 1.22 in sprinkler and 1.86 in drip whereas in the fresh sown sugarcane benefit cost ratio is 0.70 in flood, 0.84 in sprinkler and 1.17 in drip table 3 and 4
This show that benefit cost ratio of ratoon sugarcane crop is higher for short period than fresh sugarcane
The ratoon crop gives high return immediately after harvesting therefore significant important method of growing of sugarcane but not have potential to increase the productivity of the crop for long period
Break-up of total cost and income obtained over various cost of sugarcane
The cost of cultivation also determined by the breaking–up of the total cost which standard method by CACP The break-up of the total cost and income obtained over different cost
of fresh sown sugarcane under different irrigation method is given in table 5 and 6 Now while calculating cost of cultivation by CACP method question arise out of 7 costs which cost is appropriate to calculate profitability (return over cost of cultivation)
In the present study, A1 and A2 cost under different method of irrigation method is same i.e., A1=A2 for flood irrigation method (90830.81) A1=A2 for sprinkler irrigation method (10484.76 ₹ /ha) A1=A2 for drip (102825.90₹ /ha) and return over cost A1 and A2 is also equal this is because in the study farmer does not had lease-in or lease out land The analyzed data reveals that the cost A1, A2
is not a appropriate cost to determine return over the cost because in these cost does not cover interest on value of owned capital assets and rent for land which would form substantial share in modern agriculture today
Trang 5Table.1 Cost of cultivation of sugarcane fresh sown by method of irrigation (Rs./ha.)
Sr
N
Total Material cost 34528.01 27.36 37149.03 27.73 34613.44 25.44
Total Human Labour 54044.26 42.83 60067.96 44.84 66416.93 48.82
Total power cost 8285.63 6.57 7278.46 5.43 5677.80 4.17
Total variable cost 98584.31 78.12 106352.90 79.39 108438.83 79.71
ii Rental value of land 24700.00 19.57 24700.00 18.44 24700.00 18.16
Total fixed cost 27604.10 21.88 27604.10 20.61 27604.10 20.29
Table.2 Cost of cultivation of sugarcane ratoon sown by method of irrigation (Rs./ha.)
Sr
N
Trang 6Table.3 Economics of sugarcane cultivation under fresh sown method
2 Cost of Cultivation (₹ /ha) 126188.41 133957.00 136042.94
3 Gross return (₹ /ha) 215124.49 246764.49 295659.00
5 Cost of production (₹ /Qt) 164.24 152.00 128.84
Table.4 Economics of sugarcane cultivation under ratoon sown method
2 Cost of Cultivation (₹ /ha) 93727.75 97972.84 93568.08
3 Gross return (₹ /ha) 189267.87 217442.33 267995.00
5 Cost of production (₹ /Qt) 138.66 126.16 97.76
Table.5 Break-up of total cost and income obtained over different cost of sugarcane Fresh sown
by method of irrigation (₹ /ha.)
Trang 7Table.6 Break-up of total cost and income obtained over different cost of sugarcane ratoon sown
by method of irrigation (₹ /ha.)
The cost B1 and B2 covers the interest on
value of owned capital assets and rent for land
but the return over the cost B2 was decreased
from the cost incurred in the cost B2 i.e flood
cost incurred in B2 118405.27 but the return
over the cost B2is 96719.21 ₹ /ha Similarly
sprinkler cost B2= 129059.22 ₹ /ha gets
return over 117705.27 ₹ /ha and in drip cost
B2 = 130400.36 ₹ gets return over 165258.64
₹ /ha this shows that the rental value of
owned land is very high which decrease the
profitability Moreover the cost B1 and B2
does not include the cost for performing
managerial operation therefore actual
profitability cannot be worked out The cost
C2 and C3cost concept can be used to find the
profitability cost C2 cover actual expenses in
cash and kind incurred in production by
owner, rent paid for leased-in land, input value
of family labour and the interest on value of
owned capital assets (excluding land) The
C3cost include all the component of cost C2
and adds 10 percent of the cost C2 on account
of managerial functions performed by the
farmers
There C2 and C3 cost provided actual return over cost in the present analyzed data shows that the fresh sown sugarcane under different methods of irrigation the return over the cost C2 and C3 get decrease table 3 But, under drip irrigation method the return over the cost incurred A1, A2 and cost B1, B2 shows significant increased in return over cost A1, A2 and B1, B2 Whereas cost C2 show small increase in the return over cost and return over cost C3 again get decrease due to improper management of resource in the irrigation system Which support that the initial cost of cultivation of fresh sown is much high where
as in ratoon sown crop under different irrigation the cost incurred cost C2 and Cost C3 is less than the fresh sown sugarcane table
4 Despite of less cost incurred in ratoon sugarcane the return over cost C2 under flood method is less and the return over cost C3 get decrease Similarly under sprinkler irrigation method the return over cost was not very significant and at last not the least the drip irrigation method which is the best irrigation
Trang 8method for sugarcane crop shows highly
significant increased in the profitability over
the cost incurred i.e the return over cost of
A1, A2, B1, B2, C1, C2 and C3 all shows high
profitability than any other method of
irrigation under fresh sown sugarcane method
Therefore, in the present study reveals that
drip irrigation in ratoon is most demarcating
method by analysis profitability over other
method used in sugarcane crop
The major findings are found as on the
inputs/material use in fresh sown sugarcane
and in ratoon crop in sampled farms was not
as per the recommended dose and in ratoon
crop the initial input, labour and power use
were less than the fresh sugarcane The
number of irrigation was higher in ratoon crop
than the fresh sown sugarcane under different
irrigation methods It also envisaged that
initial input was less in ratoon crop therefore;
the cost of cultivation of ratoon was less than
fresh sown sugarcane The total cost of
cultivation of sugarcane under flood ratoon
crop was 93728 ₹ /ha, sprinkler 97973 ₹ /ha,
and drip 93568 ₹ /ha where as cost of
cultivation under flood irrigation method of
fresh sown sugarcane was 126188 ₹ /ha, in
sprinkler 133957 ₹ /ha and in drip 136043
₹ /ha It also found that variable cost incurred
in ratoon sugarcane was less than the fresh
sugarcane This depicts that variable cost
changes with level of production therefore;
optimum level of inputs should be used The
benefit cost ratio of ratoon crop was higher
and found to be 1.02 in flood, 1.22 in sprinkler
and 1.86 in drip irrigation method where as in
the fresh sown sugarcane benefit cost ratio
was 0.70 in flood, 0.84 in sprinkler and 1.17 in
drip irrigation method The benefit cost ratio
of ratoon crop was high due to low cost of
production higher net return but not have long
term benefit to increase the productivity of
sugarcane
Based on outcomes, the following
suggestations are hereby recommended for the welfare of sugarcane growers of the state The ratoon crop of sugarcane is sensational between farmers as they prefer to take ratoon crop since it does not requires setts for sowing and low fertilizer applied which make farmers
to believe that input cost will decrease as compared to fresh sown sugarcane But, ratoon crop does not able to enhance the farm productivity of sugarcane in long terms Therefore, it is recommended that farmers should not prefer more than 2 to 3 years ratoon in sugarcane cultivation Analytical results show that drip method of irrigation in fresh sown sugarcane is profitable over cost incurred of A1, A2, B1, B2 and C3 shows high profit Drip method of irrigation in ratoon crop is most demarcating method by profitability analysis over other method Therefore, it should be promoted to get high return with high rate of resource efficiency and efficient use of irrigation water
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How to cite this article:
Dushyant Kumar, Pukhraj Singh, Lalit Kumar Verma and Nitin K Nag 2019 An Economic Analysis of Production of Sugarcane under various Methods of Irrigation in Sonipat District of
Haryana, India Int.J.Curr.Microbiol.App.Sci 8(10): 808-816
doi: https://doi.org/10.20546/ijcmas.2019.810.093